The Government-e-Marketplace (GeM) has reduced transaction charges levied on sellers and service providers transacting on its platform as part of the government’s 100-day initiative. The Commerce and Industry Ministry said that GeM has reduced its transaction fee by almost 33 percent, which is expected to greatly benefit GeM sellers or service providers to become more competitive.
GeM announced a new revenue policy for the portal, which was given effect from this year’s 9th August. As per this policy, all orders valued up to 10 lakh rupees will now attract zero transaction charges, as opposed to the earlier order value ceiling of 5 lakh rupees. The Ministry said that nearly 97 percent of the transactions on GeM will be attracting zero transaction charges. It said that the remaining will incur a nominal fee worth 0.30 percent of the order value above 10 lakh rupees, subject to a maximum of 3 lakh rupees only, irrespective of the size of the order.
The Ministry said that the latest transaction fee structure is aimed at democratising access to the public procurement ecosystem. It aims to particularly benefit MSEs, which often face challenges navigating cumbersome financial and operational barriers. By considerably lowering transaction charges, GeM aims to level the playing field, thereby creating opportunities for small-scale businesses to deliver value and innovation in public procurement.
